CITE

    18 USC Sec. 892                                             01/05/2009

EXPCITE

    TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
    PART I - CRIMES
    CHAPTER 42 - EXTORTIONATE CREDIT TRANSACTIONS

HEAD

    Sec. 892. Making extortionate extensions of credit

STATUTE

      (a) Whoever makes any extortionate extension of credit, or
    conspires to do so, shall be fined under this title or imprisoned
    not more than 20 years, or both.
      (b) In any prosecution under this section, if it is shown that
    all of the following factors were present in connection with the
    extension of credit in question, there is prima facie evidence that
    the extension of credit was extortionate, but this subsection is
    nonexclusive and in no way limits the effect or applicability of
    subsection (a):
        (1) The repayment of the extension of credit, or the
      performance of any promise given in consideration thereof, would
      be unenforceable, through civil judicial processes against the
      debtor
          (A) in the jurisdiction within which the debtor, if a natural
        person, resided or
          (B) in every jurisdiction within which the debtor, if other
        than a natural person, was incorporated or qualified to do
        business
      at the time the extension of credit was made.
        (2) The extension of credit was made at a rate of interest in
      excess of an annual rate of 45 per centum calculated according to
      the actuarial method of allocating payments made on a debt
      between principal and interest, pursuant to which a payment is
      applied first to the accumulated interest and the balance is
      applied to the unpaid principal.
        (3) At the time the extension of credit was made, the debtor
      reasonably believed that either
          (A) one or more extensions of credit by the creditor had been
        collected or attempted to be collected by extortionate means,
        or the nonrepayment thereof had been punished by extortionate
        means; or
          (B) the creditor had a reputation for the use of extortionate
        means to collect extensions of credit or to punish the
        nonrepayment thereof.
        (4) Upon the making of the extension of credit, the total of
      the extensions of credit by the creditor to the debtor then
      outstanding, including any unpaid interest or similar charges,
      exceeded $100.
      (c) In any prosecution under this section, if evidence has been
    introduced tending to show the existence of any of the
    circumstances described in subsection (b)(1) or (b)(2), and direct
    evidence of the actual belief of the debtor as to the creditor's
    collection practices is not available, then for the purpose of
    showing the understanding of the debtor and the creditor at the
    time the extension of credit was made, the court may in its
    discretion allow evidence to be introduced tending to show the
    reputation as to collection practices of the creditor in any
    community of which the debtor was a member at the time of the
    extension.

SOURCE

    (Added Pub. L. 90-321, title II, Sec. 202(a), May 29, 1968, 82
    Stat. 160; amended Pub. L. 103-322, title XXXIII, Sec.
    330016(1)(L), Sept. 13, 1994, 108 Stat. 2147.)

AMENDMENTS

      1994 - Subsec. (a). Pub. L. 103-322 substituted "fined under this
    title" for "fined not more than $10,000".